Hi thaliathu,
Welcome to the Apple Community.
Re: "this Apple ID has not yet been used in iTunes or the App Store"
Generally, this means it is the first time you are using the App Store or iTunes,
and
you have no valid payment method in your account
Apple requires you to have an Apple ID and Apple ID password to log-in
and
for the first use, also requires you to have a valid payment method listed in your Apple ID account,
even if you are only downloading free apps.
Apple support have articles online (links below) that can help:
If you do not have an Apple ID to log-in with:
How to create a new Apple ID – Apple Support
See what payment methods you can use in your country or region:
Payment methods that you can use with your Apple ID – Apple Support
How to :
Change, add, or remove Apple ID payment methods - Apple Support
Get apps in the App Store on iPhone – Apple Support
After you have used the App Store or iTunes for the first time, you can remove the payment method if you wish.
All the best :-)